Correlation Between IShares 1 and JIB
Can any of the company-specific risk be diversified away by investing in both IShares 1 and JIB at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining IShares 1 and JIB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares 1 3 Year and JIB, you can compare the effects of market volatilities on IShares 1 and JIB and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in IShares 1 with a short position of JIB. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares 1 and JIB.
Diversification Opportunities for IShares 1 and JIB
Weak diversification
The 3 months correlation between IShares and JIB is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding iShares 1 3 Year and JIB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JIB and IShares 1 is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on iShares 1 3 Year are associated (or correlated) with JIB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JIB has no effect on the direction of IShares 1 i.e., IShares 1 and JIB go up and down completely randomly.
Pair Corralation between IShares 1 and JIB
If you would invest 8,210 in iShares 1 3 Year on August 28, 2024 and sell it today you would earn a total of 7.00 from holding iShares 1 3 Year or generate 0.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
iShares 1 3 Year vs. JIB
Performance |
| Timeline |
| iShares 1 3 |
| JIB |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
IShares 1 and JIB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares 1 and JIB
The main advantage of trading using opposite IShares 1 and JIB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares 1 position performs unexpectedly, JIB can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in JIB will offset losses from the drop in JIB's long position.| IShares 1 vs. iShares 7 10 Year | IShares 1 vs. iShares iBoxx Investment | IShares 1 vs. iShares TIPS Bond | IShares 1 vs. iShares 3 7 Year |
| JIB vs. iShares MSCI EAFE | JIB vs. iShares iBoxx Investment | JIB vs. iShares TIPS Bond | JIB vs. iShares 1 3 Year |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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